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Old 03-31-2007, 10:51 PM
 
Location: denver
161 posts, read 675,472 times
Reputation: 89

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This is interesting topic, back in 2000 bear market i lost about 60% from janus mutual fund. i let it sit there and now my loss is at 20%, im hoping in 16 years i have some nice returns. im in no rush to get the money out. im 43 and after 11 years on the job I just started 401k with my company. Why waited 11 years? I just didnít trust them at that time. anyway Im doing the max 25% contribution and company matching 5%. With annual raise of 2.5% and inflation at 3%. With conservatives growth of 9% I should have about $630k in 16 years at age 59.5 when I retire. Thatís not much money but it will supplement my Roth IRA which is tax free withdraw, mutual funds, and tax-free municipal bonds. Im hoping to get $1M after taxes when I reach age 59.5.
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Old 04-10-2007, 09:49 AM
 
70 posts, read 262,651 times
Reputation: 39
Thanks to those that got this thread going again! O.K. we have the full investment and match in the 401K, 1Mil.+ in Company stock (depending on the day), the company gives us around $35-50,000 restricted more each year as part of bonus and we pay the taxes on the shares that vest each year now. We bought up in our home purchase this year when we moved to Washington as a further investment (plus we needed the tax deduction). So now we should work on paying it off faster. Does changing to a twice monthly house payment versus a monthly payment make a big difference in a long run? I keep getting offers in the mail to do this, we don't want to pay for the house now because the 6% interest is far less than the gain we are making in our other investments.
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Old 04-10-2007, 09:56 AM
 
70 posts, read 262,651 times
Reputation: 39
One more question, we had a financial planner tell us about 10 years ago that we would need 2+ Million at least to live the life style we desire at retirement at age 60. Do you all agree with this? A million dollars is not what it used to be and certainly won't be in another 10 years, especially since life expectancy continues to rise and we will hopefully have alot more years to live off our savings.
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Old 04-10-2007, 03:05 PM
 
Location: WA
5,398 posts, read 21,420,026 times
Reputation: 5903
Quote:
Originally Posted by relocated46 View Post
One more question, we had a financial planner tell us about 10 years ago that we would need 2+ Million at least to live the life style we desire at retirement at age 60. Do you all agree with this? A million dollars is not what it used to be and certainly won't be in another 10 years, especially since life expectancy continues to rise and we will hopefully have alot more years to live off our savings.
Many people that fund their retirement from investments target a conservative withdrawal rate of about 4%, so 2 million would generate allow an income of $80,000 a year without drawing principal.

The 4% rate assumes a very conservative 7% return and 3% inflation rate. It does not consider taxes which may or may not be due depending upon the type of retirement account.

Also consider any social security you could draw that would reduce the need for investment income. I know a number or people that have retired based on a nest egg of 1 to 2 million that live well on the earnings and will leave the principal to their heirs.
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Old 04-10-2007, 05:28 PM
 
Location: Northern California
3,684 posts, read 13,174,755 times
Reputation: 1835
Only 2.9% of Americans have a million dollars in assets excluding primary residence. That's only 1% of the population! If $1 mil "ain't what it used to be" and may not be enough for retirement, what's going to happen to the other 99% of the population when they retire?
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Old 04-10-2007, 05:56 PM
 
Location: Springfield, Missouri
2,814 posts, read 12,080,327 times
Reputation: 2000001303
Quote:
Originally Posted by humboldtrat View Post
Only 2.9% of Americans have a million dollars in assets excluding primary residence. That's only 1% of the population! If $1 mil "ain't what it used to be" and may not be enough for retirement, what's going to happen to the other 99% of the population when they retire?
They are totally and unequivocably screwed!
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Old 04-11-2007, 01:48 AM
 
70 posts, read 262,651 times
Reputation: 39
Humboltrat, this is exactly the question I wanted to get people to think about. From information I am getting from T.V. programs, advisors etc... and asking people my age (40-50), people are somewhat in the dark about how much more they should be preparing for the future. Now I realize not everyone's expectations are the same, but I would like to travel etc... and I would like my husband to have the option to work past 60 or not.
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Old 04-12-2007, 03:05 PM
 
67 posts, read 246,701 times
Reputation: 39
Default Let the kids help

How come nobody see their kids as a retirement vehicle? Let's see... after sheltering them, taking care of them and giving them the best of everything for 18+ years, paying for their college, etc., I'm on my own when I'm old and reitred? What kind of a society is this? That just doesn't seem right.

I fully expect my kids to take care of me and to house me- if/when it comes down to that. The asian countries got it right on this one, in my opinion.
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Old 04-13-2007, 01:32 AM
 
Location: Oregon Coast
1,848 posts, read 6,253,134 times
Reputation: 1383
Well it may be different in some cultures. My kids have plenty but they also have kids to take care of. I would not want to be a burden to them when it doesn't have to be that way. We as older adults need to make our own plans for the future.

No I wouldn't trust a 401k as the only amount in my retirement plans. It's too risky.The stock market is crazy. I have a small 401k but that's all.

Finding other ways to finance your future is the best. Pay off your house and bills. Get a bank account. Get a job with a pension.
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Old 04-13-2007, 10:16 AM
 
Location: WA
5,398 posts, read 21,420,026 times
Reputation: 5903
Quote:
Originally Posted by Waterlily View Post

...

No I wouldn't trust a 401k as the only amount in my retirement plans. It's too risky.The stock market is crazy.

...

Get a job with a pension.
Keep in mind that all pensions are funded by investing in the stock market. The risk is minimized by using strategies that are conservative and diversify the holdings.
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